Correlation Between POWERGRID Infrastructure and Indian Hotels
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By analyzing existing cross correlation between POWERGRID Infrastructure Investment and The Indian Hotels, you can compare the effects of market volatilities on POWERGRID Infrastructure and Indian Hotels and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in POWERGRID Infrastructure with a short position of Indian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and Indian Hotels.
Diversification Opportunities for POWERGRID Infrastructure and Indian Hotels
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POWERGRID and Indian is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves and The Indian Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Hotels and POWERGRID Infrastructure is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on POWERGRID Infrastructure Investment are associated (or correlated) with Indian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Hotels has no effect on the direction of POWERGRID Infrastructure i.e., POWERGRID Infrastructure and Indian Hotels go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and Indian Hotels
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to under-perform the Indian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, POWERGRID Infrastructure Investment is 2.54 times less risky than Indian Hotels. The stock trades about -0.12 of its potential returns per unit of risk. The The Indian Hotels is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 29,638 in The Indian Hotels on October 13, 2024 and sell it today you would earn a total of 50,952 from holding The Indian Hotels or generate 171.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. The Indian Hotels
Performance |
| Timeline |
| POWERGRID Infrastructure |
| Indian Hotels |
POWERGRID Infrastructure and Indian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and Indian Hotels
The main advantage of trading using opposite POWERGRID Infrastructure and Indian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure position performs unexpectedly, Indian Hotels can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Indian Hotels will offset losses from the drop in Indian Hotels' long position.The idea behind POWERGRID Infrastructure Investment and The Indian Hotels pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Indian Hotels vs. Univa Foods Limited | Indian Hotels vs. SIL Investments Limited | Indian Hotels vs. Cholamandalam Investment and | Indian Hotels vs. POWERGRID Infrastructure Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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